Section 1 Short title
This Act may be cited as the “Protecting Employees Tips Act”.
Protecting Employees Tips Act
A BILL
To amend the Fair Labor Standards Act of 1938 to prohibit employers from keeping employees’ tips to cover the cost of financial transaction fees.
Sec. 2 Prohibition on keeping tips to cover financial transaction fees
Section 3(m)(2)(B) of the Fair Labor Standards Act of 1938 (29 U.S.C. 203(m)(2)(B)) is amended by inserting “, or keeping any portion of employees’ tips to cover the cost of any fee established, charged, or received by a payment card network for the purpose of compensating an issuer for its involvement in a transaction in which a person uses a debit card or credit card (as the terms debit card, credit card, issuer, and payment card network are defined in section 921(c) of the Electronic Fund Transfer Act (15 U.S.C. 1693o–2(c)))” after employees’ tips.